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Mandatory Deductions From Your Paycheck

Deduction

What do you get?

Who pays?

Federal Income Tax

This tax helps pay for services


provided by the federal government,
such as defense, human services,
and the monitoring and regulation of
trade.

Employee

State Income Tax

This tax helps pay for services


provided by state government, such
as roads, safety and health. (Not all
states levy an income tax.)

Employee

Local Income Tax

This tax helps pay for services


provided by the city or other local
government, such as schools, police,
and fire protection. (Very few local
areas levy an income tax.)

Employee

FICA: Social
Security Tax

This tax provides for old-age,


survivors, and disability insurance.

Employee or employer

FICA: Medicare Tax

This tax provides for hospital


insurance for the elderly.

Employee or employer